In this article GOOGL NVDA Follow your favorite stocks CREATE FREE ACCOUNT Meta founder and CEO Mark Zuckerberg speaks during the Meta Connect event at Meta headquarters in Menlo Park, California, on Sept. 27, 2023. Josh Edelson | AFP | Getty Images Meta CEO Mark Zuckerberg has been assembling a large stockpile of Nvidia chips, spending billions of dollars so his company can develop and train advanced artificial intelligence models.
But even he says the AI hype may be driving too much investment. "I think that there's a meaningful chance that a lot of the companies are overbuilding now and that you look back and you're like, oh, we maybe all spent some number of billions of dollars more than we had to," Zuckerberg said on a podcast this week with Bloomberg's Emily Chang. He's not the only one expressing that sentiment.
On Alphabet's earnings call on Wednesday, CEO Sundar Pichai said his company may well be spending too much money on AI infrastructure, which largely consists of Nvidia's graphics processing units (GPUs). But he sees little choice. "When we go through a curve like this, the risk of underinvesting is dramatically greater than the risk of overinvesting for us here," Pichai said.
In addition to Meta and Alphabet, Nvidia is racking up business from Microsoft , Amazon , Oracle and Tesla , which have all publicly pronounced that AI investment is a central priority for this year and the foreseeable future. Nvdia's revenue has more than tripled for three straight quarte.